NEW YORK, N.Y. - PepsiCo says it plans to start testing new fountain equipment at restaurants that offers nearly 100 different flavour combinations.

The test follows Coca-Cola's introduction in 2009 of its Freestyle machine, which also lets customers touch a screen to pick from a wide array of flavour combinations. PepsiCo's test, set to begin at five restaurants in Denver, was first reported by the industry tracker Beverage Digest.

Fountain sodas at restaurants are an important part of the broader industry, representing about a quarter of overall sales volume, according to Beverage Digest. Coca-Cola Co., which is served in chains including McDonald's and Wendy's, has about 70 per cent of the fountain business.

PepsiCo Inc. has about 30 per cent and is served at chains including Taco Bell and Pizza Hut, which it previously owned.